The 2026 Academies Budget Forecast Return (BFR) guidance has now been released, giving trusts clarity on what’s required for this year’s submission.
The Department for Education (DfE) has confirmed that the BFR will open in July 2026, with a deadline of 24 September 2026.
While the extended deadline provides more time, many trusts are already under pressure, finalising budgets without confirmed pay awards and adapting to new reporting requirements late in the cycle.
In this guide, our finance experts break down:
- What’s changed in BFR 2026
- Where trusts are most likely to encounter issues
- What CFOs, finance leads and SBMs should do now
What’s new in the 2026 BFR?
New finance questions on trust structure
Two new questions have been introduced:
- FQ5: Does your trust use top slicing?
- FQ6: How is GAG managed (not pooled, fully pooled, or partially pooled with %)?
SBS expert insight
This is a clear move towards greater DfE scrutiny of trust financial models.
Trusts should ensure:
- Their response aligns with internal policy and board understanding
- Partial pooling percentages are accurate and evidence-based
We’re already seeing inconsistencies between reported approaches and actual practice, something that could raise questions during review.
New income line: investment income (Line 213)
A new line has been introduced to separate out:
- Bank interest
- Deposit interest
- Dividends
- Investment-related income
At the same time:
- Line 220 (other income) must now exclude all investment income
SBS expert insight
This change sounds simple, but in practice it will require careful reworking of pre-populated figures.
Common issues include:
- Double counting income
- Misalignment between AAR and prior BFR
- Incorrect adjustments to line 220
Our advice: start this reconciliation early, it’s one of the most common causes of validation errors.
Expanded reserves reporting requirements
Trusts with positive revenue reserves (up to 20% of income) must now:
- Explain how reserves will be used
- Identify contingency levels (as a % of income)
- Select structured responses explaining their approach
SBS expert insight
This is one of the most significant changes this year.
The DfE is moving from simply asking:
“What do you hold?”
to:
“Why are you holding it and how will it benefit pupils?”
Trusts should expect increased scrutiny where:
- Reserves appear high but undefined
- There is no clear spending plan
- Contingency levels are not justified
We recommend aligning your BFR response with your reserves policy and board strategy before submission.
Updates to pre-populated balances (Lines 410 and 670)
The calculation of key balance lines has been updated and is now:
- Fully linked to Accounts Return data
- Pre-populated and non-editable
SBS expert insight
This removes flexibility and increases the importance of your Accounts Return accuracy.
If something doesn’t look right, it cannot be corrected within the BFR.
Instead, finance teams should:
- Reconcile balances early
- Confirm fund classifications are correct
- Identify issues before starting the return
Improvements to the BFR Excel workbook
Trusts can now:
- Download BFR data
- Use it to prepare their submission offline
SBS expert insight
While this improves efficiency, it also introduces risk around:
- Version control
- Duplicate working files
- Data inconsistencies
We strongly recommend:
- Using a single controlled version
- Assigning clear ownership across the finance team
Key BFR dates for 2026
- BFR opens: July 2026
- Submission deadline: 24 September 2026
With many trusts already scheduling BFR work, these changes may require revisiting timelines and internal deadlines.
The biggest challenge this year: planning without certainty
Beyond the technical updates, the biggest issue facing trusts remains unchanged:
- Budgets and forecasts are being built
- Without confirmed teacher pay awards or cost assumptions
- Under tighter timelines than expected
This creates risk of:
- Rework later in the cycle
- Reduced confidence in forecast accuracy
- Pressure on finance teams and leadership
What finance teams should prioritise now
Based on what we’re seeing across the sector, our experts recommend focusing on the following:
-
Sense-check your trust model responses
Ensure answers on:
- Top slicing
- GAG pooling
are consistent, evidenced and aligned with board understanding.
-
Clean and reconcile income lines early
Pay particular attention to:
- New Line 213 (investment income)
- Adjustments to Line 220
This is a key risk area for errors and delays.
-
Strengthen your reserves narrative
Be ready to clearly explain:
- Why reserves are held
- How they will be used
- What level is contingency
-
Reconcile your Accounts Return data
As balances are now locked:
- Any inconsistencies must be resolved upfront
-
Revisit your timeline
With the September deadline:
- Build in time for review and iteration
- Avoid leaving validation and submission to the last minute
How SBS can support your BFR
For many trusts, this year’s BFR is more complex than it first appears.
Our finance experts support trusts with:
- End-to-end BFR preparation and review
- Data reconciliation and validation checks
- Reserves strategy alignment and narrative development
- Scenario planning and financial modelling
We work alongside your team to reduce pressure, minimise risk, and ensure your submission is both accurate and defensible.
Need support with your BFR?
If you’d like support with your BFR submission or want a review before submitting, our team is here to help.
Get in touch with SBS to speak to one of our academy finance experts.
Meet our SBS expert
Kelly Crawford
Finance Service Lead
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